Do You Have 100-Percent Visibility?

What is 100-percent visibility and why is it important? If you work as a consultant and you bill clients through an employer of record, not having 100-percent visibility can seriously impact your bottom line. Here are some of the factors that contribute to 100-percent visibility.

Visibility Factors:

#1: Premium Employer of Record

A premium employer of record gives you 100-percent visibility into the details of your consulting career. An ordinary employer of record does not. If knowledge is power, then visibility gives you the power to control your consulting career. Anything less than 100-percent visibility stifles your power and robs you of your control. This post will help you appreciate the profound difference between a premium employer of record and an ordinary one [Why Use a Premium Employer of Record]

#2: Contract Negotiations

A premium employer of record facilitates your participation in every aspect of contract negotiations. You’re the one doing the work. You should have a say as to what is in the contract. Ordinary employers of record won’t let you near the contract. Want to know if you are dealing with an ordinary employer of record? Just ask to see the contract.

#3: Statement of Work (SOW)

A premium employer of record invites you to participate in defining the statement of work, including project-specific activities, deliverables, timelines and other contractual obligations required of you in providing your consulting services to the client. Ordinary employers of record never let contractors participate in developing the statement of work.

#4: Billing Rate

Ordinary employers of record call the billing rate “proprietary and confidential information” as if your true value to the client were a trade secret. Want to know how to recognize an ordinary employer of record? Ask how much they are billing the client for your direct services. A premium employer of record always discloses the billing rate. An ordinary employer of record never does.

#5: Billing Terms

A premium employer of record lets you choose the billing terms that work best for you. For example, hourly, weekly, by the project, by the milestone, deposit up front, retainer, on-call rate, etc., and these terms are specified by you in your contract. Ordinary employers of record rigidly refuse to let you specify billing terms in the contract, a contract they won’t let you see anyway.

#6: Payment Cycle

A premium employer of record gives you the power to choose the most convenient payment cycle. For example, could you wait to be paid until after the client remits payment? Or would you prefer to be paid up front, understanding that payroll funding has a real cost that reduces your pay rate? Most highly compensated contract professionals, like most independent contractors, would rather wait so they can avoid the cost of money. Ordinary employers of record always finance their receivables and they deduct the cost of money from your pay rate.

#7: Third-party Fees and Commissions

A premium employer of record provides full visibility into the fees and commissions charged by service providers, gatekeepers and other intermediaries operating between you and the client. Examples are:

  • Contract placement recruiters
  • Back-office providers
  • Prime contractors
  • Vendor management services
  • Managed services providers

These intermediaries charge fees that can total up to 30-50 percent of the billing rate. 100-percent visibility gives you leverage to negotiate better rates in order to control these third-party costs. Ordinary employers of record give you zero visibility into the charges levied by third-party intermediaries. A premium employer of record hides nothing.

#8: Access to Your Own Cash Flow

If you are a self-employed consultant and you bill your clients directly, you have full visibility of your cash flow. If you don’t do your own books, your accountant will happily prepare a detailed profit & loss report which will show you everything you need to know about the financial status of your consulting business. A premium employer of record will prepare a complete cash flow report detailing how collected revenues are allocated to arrive at your highly tax-advantaged net pay. With an ordinary employer of record, visibility into the cash flow generated by your work is virtually zero.

#9: Access to The Client

Ultimately, it all comes down to this. If you were self-employed, you would call all the shots. But, as the employee of an ordinary employer of record, you are shut out of any access to the client. This is why you need to work through a premium employer of record. A premium employer of record gives you 100-percent visibility into every aspect of your consulting career, including 100-percent access to the clients — your clients — who are paying for the consulting services you are personally delivering.

The Key to 100-Percent Visibility

… not having 100-percent visibility can seriously impact your bottom line.

The key to 100-percent visibility is the Solo Workforce 100-percent transparent business model. Solo Workforce excels as a premium employer of record because of its innovative, tax-advantaged business model, creating what is arguably the nation’s most transparent employer of record platform. We designed Solo Workforce to address the needs of highly skilled contract professionals who are looking for a back office partner that delivers more than self-employment.

When you join Solo Workforce, we set you up as the manager of your own one-person business unit, called a division. There are as many divisions as there are Solo Workforce professionals. Each division operates like a separate one-person business and each contract professional operates like a self-employed independent contractor. This arrangement lets you retain all the freedom, independence, flexibility and tax advantages of self-employment, including 100-percent visibility into the operation of your Solo Workforce division.

The revenues Solo Workforce collects on your behalf enter your division as a pre-tax revenue stream. These pre-tax funds cover our very modest administrative service fee, purchase your employee benefits, pay the employer’s share of payroll taxes, reimburse you for your out-of-pocket business and medical expenses and contribute the employer’s match to your 401(k) account. The remainder of the revenue stream makes up your highly tax-advantaged gross pay.

With every paycheck, Solo Workforce prepares a complete cash flow report, essentially a profit & loss statement, providing a detailed accounting of your division’s financial activity and current status. This report gives you 100-percent visibility into the billing rate to your client and the gross revenue stream to your division, as well as a full accounting of how collected revenues are allocated to arrive at your highly tax-advantaged gross pay.

The Solo Workforce business model stands virtually alone in providing 100-percent visibility — something you will never receive from an ordinary employer of record.

You deserve more than an ordinary employer of record. You deserve Solo Workforce.